Egon von Greyerz, market analyst and founder of Matterhorn Asset Management, has warned that the central bank system is poised to collapse due to the increasing issuance of currency and debt. In his article, “The Everything Collapse”, Von Greyerz discusses the direct consequences of the 2008 market collapse which is currently being sustained by central banking liquidity injections. In light of this, Von Greyers explains the need to pay off debts, and jump to tangible assets; particularly gold and silver, in order to avoid losses due to the potential plummet in value of other assets.

Von Greyerz highlights that almost all markets are closely linked, and thus can be affected by a systemic collapse in the same way they are affected by the influence of central banks - that is to say, by a plunge in price. He speculates that international markers, such as the American real estate market, could drop to zero when no buyers can be found. Similarly, the stock markets may suffer a great loss, since it is likely that investors won’t make it to the exit of the system, as the demand will have been extinguished before a crash.

The asset manager further details the insufficient safety measures set to avoid bank repossessions, such as the FDIC insurance, which only covers 0.7% of the total deposits. As a result, Von Greyerz questions whether central banks will need to print more currency to save the system, leading to higher inflation levels.

In conclusion, Von Greyerz stresses the need to hedge savings in precious metals, such as gold and silver, before the remarkable surge in international demand on silver and gold make them unavailable even at incredible prices. According to the market analyst, investing in these tangible assets can act as a safe asset in times of economic uncertainty and could be the last financial resort in the case of a collapse.



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